Cementir Holding N.v. · MIL:CEM
Cementir — Investor Day (September 2020)
38 slides from Cementir's investor day presentation, Sep 10, 2020
Slide 1: Infrastructure & Energy Day
Cementir Holding N.V. Infrastructure & Energy Day September 10th, 2020 Digital Infrastructure & Energy Day | 10 September 2020
Slide 2: Agenda
Agenda Group Highlights 3 White Cement Global Leadership 8 Green Capex Highlights 15 H1 2020 Results and Guidance 19 Appendix 31 2
Slide 3: Group Highlights
Group Highlights Trakya plant, Turkey 3
Slide 4: Cementir at a glance
Cementir at a glance € 1.2 BN 3,042 11% ROCE Annual Sales Employees € 1.4 BN 13.1 M tons 20% share* Net capital White Cement employed globally Cement Capacity Data as of December 31st, 2019 * Excluding «off-white» and lower quality Asian products 4
Slide 5: Cementir Industrial Footprint
Cementir Industrial Footprint Plants Cement plants: 11 Terminals: 30 RMC plants: 100 Quarries: 11 Precast products plants: 1 Waste management facilities: 3 Sales / Capacity Grey cement capacity: 9.8 mt White cement capacity: 3.3 mt Grey cement sales: 6.8 mt White cement sales: 2.7 mt Grey cement pla
Slide 6: Cementir operates in five business segments
Cementir operates in five business segments Vertical integration in countries with grey cement presence GREY CEMENT WHITE CEMENT READY-MIXED CONCRETE AGGREGATES WASTE / OTHER REVENUE = 743 M€ REVENUE = 405 M€ REVENUE = 95 M€ REVENUE = 73 M€ EBITDA = 186 M€ EBITDA = 35 M€ EBITDA = 31 M€ EBITDA = 12 M
Slide 7: Strategy based on sustainable growth
Strategy based on sustainable growth Strengthen white cement global leadership, 2019 EBITDA breakdown focus on high-added value solutions and special cements (FuturecemTM) Asia Pacific Significant green investments of 100 M€ (10% Italy Egypt 9% of mkt cap) over the 2020-2022 Industrial Plan 2% 3% Im
Slide 8: White cement global leadership
White cement global leadership El Arish plant, Egypt 8
Slide 9: White Cement: unique competitive position
White Cement: unique competitive position 3.3 Mt 2.7 Mt White cement and clinker Cement Capacity volumes sold in 2019 Global leadership in white cement Local leadership #1 in USA, Continental Europe, and production Australia and South East Asia Leader in global trading flows 25% Share of Global In 2
Slide 10: White cement global consumption (million tons)
White cement global consumption (million tons) Eastern Europe and CIS CAGR 3.2% White cement belt Western 2014 2019 Europe China CAGR 2.1% CAGR 1.8% North America CAGR 5.9% 2014 2019 2014 2019 2014 2019 Middle East CAGR -1.6% Asia ex China CAGR 2.9% Africa CAGR -6.2% Latin America 2014 2019 CAGR -1.
Slide 11: White Cement is a premium Product
White Cement is a premium Product 1. Availability of white cement raw material is scarce Raw materials with low Fe2O3 source compared to grey cement for AALBORG WHITE CEM I CaO source SiO2 source Al2O3 source (chalk, limestone, etc.) (quartz sand, etc.) (Kaolin, alusilicate, etc.) Clinker CaSO4 sour
Slide 12: White Cement is a premium Product
White Cement is a premium Product 2. Product cost are higher than grey cement… but selling price too Cement Production Process White Clinker Grey Clinker Burning Zone Temperature 1500 – 1600° C 1400 – 1500° C Conditions in Burning Zone Incipient reducing conditions Oxidizing Reasons for higher energ
Slide 13: Unlimited applications of White Cement
Unlimited applications of White Cement 2. Paving blocks: Kerb, Poland Segments: 1.Pre-stressed and Ordinary Reinforced Precast 2.Precast Products 3.Artificial Stones 4.GRC (Glass Fiber Reinforced Concrete) 1. Pre-stressed concrete façade: Chengdu 3. Artificial stone: Villa façade application, 5.UHPC
Slide 14: Main innovative solutions developed so far
Main innovative solutions developed so far Ultra-high Glass Fiber 3D Concrete Magnetic Concrete FutureCEMTM Performance Reinforced printing mix Concrete (UHPC) Concrete (GFRC) Sustainable patented solution Ready-to-use, self- Ready-to-use, high Ready-to-use, high for cement, RMC and innovative compa
Slide 15: Green Capex Highlights
Green Capex Highlights Aalborg plant, Denmark 15
Slide 16: Innovation drive and Sustainability / Digitization Targets
Cementir Innovation drive and Sustainability / Digitization Targets Innovation Sustainability Digitization Research Quality and Technical centre 30% CO2 emissions reduction target New digitization program to with > 40 dedicated employees by 2030 streamline industrial processes Proprietary FUTURECEMT
Slide 17: Specific initiatives to achieve CO2 reduction targets
We identified specific initiatives to achieve CO2 reduction targets Clear Roadmap Both in Grey and White Cement ✓ Actions Short-term (1-3yrs) Mid-term (4-6yrs) Long-term (7-10yrs) 30% CO2 reduction target by 2030 Investments on kilns to optimize heat Specific Heat Consumption consumption Increase al
Slide 18: Digitization Driving Results
Digitization Driving Results Detailed timeline with clear targets EBITDA impact starting to materialise in 2020 • Specific initiatives identified across all areas including 100% production, maintenance and logistics ~€15m of savings run-rate by 2023 (2023E) • Phase I implementation already ongoing a
Slide 19: H1 2020 Results and Guidance
H1 2020 Results and Guidance Aalborg plant, Denmark 19
Slide 20: 2020 First Half results highlights
2020 First Half results highlights • Revenues reached 570.4 M€ (-3.6%) due to Covid19 impact especially in Belgium, France, Malaysia and Norway. − Cement volumes sold were up by 6.3% thanks to a 40% increase in Turkey • EBITDA reached 97.8 M€ (-11.2%) despite a 5.6 M€ one- off impact from settlement
Slide 21: How we are dealing with Covid-19 pandemic
How we dealing with Covid-19 pandemic Following the Covid-19 outbreak, the following actions have been undertaken: ➢ Priority assigned to health and safety (social distancing, turnover, smart working) ➢ Focus on cash preservation, with particular focus on: ― Trade Receivables ― Inventory levels ― Ca
Slide 22: Main Impact of Covid-19 on our business in H1
Main Impact of Covid-19 on our business in H1 ➢ Plant closures in China (24 January to 21 February) and Malaysia (18 March to 17 April). Other plants have witnessed temporary activity slowdowns. ➢ Situation by region: Nordic & Baltic: Activity levels remained broadly in line with the previous year B
Slide 23: Nordic & Baltic
Nordic & Baltic • Denmark − Domestic cement volumes up by 8% due to increased market activity 44% and favourable weather conditions − White cement exports slightly down for timing differences in US 69% shipments and lower volumes to UK and France; grey cement exports declined due to Covid19 Share of
Slide 24: Belgium and France
Belgium and France (1) 24% • Belgium 19% • France Share of Share of Group Revenue Group Ebitda H1 2020 H1 2020 − Grey cement and clinker volumes were down by 10%, with a drop of 30% in March, April and May caused by Covid19. June volumes increased by 7%. Prices up in line with inflation − RMC volume
Slide 25: North America
North America 10% 12% Share of Share of Group Revenue Group Ebitda H1 2020 H1 2020 • United States − White cement sales volumes declined by 4.7% especially in April and May, due to Covid19. Lower sales in Florida and some EUR '000 H1 2020 H1 2019 Chg % delays in relevant projects, with average price
Slide 26: Asia Pacific
Asia Pacific • China 8% 6% − White cement and clinker sales volumes declined by 10% due to plant shutdown between January 24th and February 21st − Sales prices in local currency rose also due to favorable mix despite tough competition − EBITDA up by 11% thanks to higher sales prices and lower fuel a
Slide 27: Turkey
Turkey (1) -9% 9% • Turkey − Grey cement volumes increased by around 40%, with domestic Share of Share of sales volumes up 25% driven by infrastructural projects near Group Revenue Group Ebitda Elazig and new projects in Trakya and Kars. Exports nearly H1 2020 H1 2020 doubled thanks to new markets o
Slide 28: Egypt
Egypt 4% 3% Share of Group Revenue Share of Group Ebitda • Egypt H1 2020 H1 2020 − White cement domestic volumes declined by 10% due to Government curfew. Significant recovery in June. Domestic prices in line with inflation − White export volumes increased by 13% to all destinations with EUR '000 H1
Slide 29: Italy
Italy 7% -6% Share of Share of Group Revenue Group Ebitda H1 2020 H1 2020 • Italy − Revenue increase thanks to higher trading volumes at Spartan EUR '000 H1 2020 H1 2019 Chg % Hive, which recorded a revenue increase of 75% Revenue 45,210 32,401 39.5% − EBITDA dropped to -5.9 M€ (3.4 M€ in H1 2019) a
Slide 30: Consolidated Income Statement
Consolidated Income Statement (EUR million) H1 2020 H1 2019 Chg % REVENUE FROM SALES AND SERVICES 570.4 591.9 (3.6%) Change in inventories (5.3) 4.7 (211.1%) Other revenue 7.4 7.5 (1.7%) TOTAL OPERATING REVENUE 572.5 604.2 (5.2%) Raw materials costs (217.5) (231.5) (6.1%) Personnel costs (95.2) (96.
Slide 31: 2020 Full Year Guidance
2020 Full Year Guidance • Revenues ~ Eur 1,2 BN • EBITDA ~ Eur 230-240 M • NFP ~ Eur 180 M • Capex ~ Eur 60 M This forward-looking indication does not include new outbreaks of the Covid 19 pandemic in the coming months. The foregoing exclusively reflects the point of view of the company's management
Slide 32: Appendix
Appendix Gaurain plant, Belgium 32
Slide 33: Reclassified Balance sheet
Reclassified Balance sheet EUR million CAPITAL EMPLOYED 31/12/2019 31/12/2018 NON CURRENT ASSETS & LIABILITIES Tangible, intangible and financial assets 1,520.2 1,462.4 Deferred taxes assets/ liabilities (96.3) (98.5) Other non current assets/ liabilities (76.0) (72.8) TOTAL NON CURRENT ASSETS & LIA
Slide 34: Consolidated income statement
Consolidated income statement (EUR million) 2019 2018 Chg % REVENUE FRO M SALES AND SERVICES 1 ,2 1 1 .8 1 ,1 9 6 .2 1 .3 % Change in inventories 5.8 12.4 (53.2%) Other revenue 25.8 31.1 (17.2%) TO TAL O P ERATING REVENUE 1 ,2 4 3 .4 1 ,2 3 9 .7 0 .3 % Raw materials costs (466.4) (479.3) (2.7%) Pers
Slide 35: Turkey and Egypt historical figures
Turkey and Egypt historical figures Turkey– cement historical consumption (Mt)1 Turkey Egypt Grey cement plants (4) White cement plant (1) RMC plants Waste Turkey – EBITDA evolution €M 2 Egypt – EBITDA evolution €M PEAK PEAK 1 Source: Turkish Cement Manufacturers Association (TÇMB). 2 EBITDA exclude
Slide 36: White vs. grey cement
White vs. grey cement White Cement Grey Cement Special / «Niche» product «Commodity» like Consumption mainly driven by renovation and Consumption mainly driven by infrastructure & restructuring or specific applications in residential/commercial residential/commercial. Widespread presence of basic ra
Slide 37: Strong M&A track record
Strong M&A track record Since 2001 over EUR 1.7 billion invested with no recourse to shareholders (M€) 600 254 312 152 112 125 87 -315 2001 2004 2005 2006 lug-16 ott-16 gen-18 mar-18 2001 - Cimentas AS and Cimbeton AS Jul. 2016 - Sacci Entered the Turkish cement market with 2 plants Cement and ready
Slide 38: Disclaimer and Other information
Disclaimer and Other information •This presentation has been prepared by and is the sole responsibility of Cementir Holding N.V. (the Investor Relations: “Company”) for the sole purpose described herein. In no case may it or any other statement (oral or otherwise) made at any time in connection here